Question: Phar Mor was a large, rapidly growing pharmacy chain that proved to have overstated assets by more than $400 million. Top executives accomplished the overstatement

Phar Mor was a large, rapidly growing pharmacy chain that proved to have overstated assets by more than $400 million. Top executives accomplished the overstatement by inflating the company’s inventories at numerous store locations. How would this affect the income statements of Phar Mor?

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